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US stocks traded in a tight range on Tuesday, February 17, 2026, after early losses tied to renewed anxiety about artificial intelligence reshaping business models. Thin volumes after the Presidents’ Day break also amplified intraday swings, as investors reassessed which sectors gain from AI and which face disruption.
At 11:35 a.m. New York time, the S&P 500 stayed little changed after earlier declines pushed it below its 100-day moving average. The NASDAQ 100 fell 0.3%, while the Dow also held near flat. In Europe, the Stoxx Europe 600 rose 0.4%, and the MSCI World Index remained little changed.
US equities opened lower, then stabilized as buyers stepped in after last week’s selloff in AI-linked names and AI-exposed industries. The S&P 500 fell about 0.5% early in the session, while the NASDAQ 100 dropped about 0.9%, before both pared losses.
Moves inside technology stayed uneven. The Bloomberg “Magnificent Seven” index slipped 0.3%, and the Philadelphia Semiconductor Index fell 0.2%. A software-focused ETF dropped 2.2%, showing that investors continued to reduce exposure where they see near-term earnings risk from AI tools.
Investors have focused on two competing risks. Many question whether hyperscalers can turn massive AI spending into profits soon. At the same time, other investors fear AI will displace parts of the economy quickly, which pressures stocks in sectors seen as vulnerable.
Corporate commentary has reinforced that debate. Bloomberg’s transcript analysis showed “AI disruption” mentions nearly doubled versus the previous quarter. This shift has not yet driven a broad reset of earnings estimates, but it has influenced positioning and sector leadership.
Surveys also point to concern about cash burn and capital intensity. Bloomberg reported that major US tech firms projected approximately $650 billion of capex in 2026, keeping attention on data centers, chips, and power needs. Investors also flagged the risk that aggressive AI investment could strain balance sheets if returns arrive slowly.
In currencies, the Bloomberg Dollar Spot Index rose 0.2%. The euro fell 0.2% to $1.1830, and sterling dropped 0.7% to $1.3531 after UK labor data lifted rate-cut expectations. The yen held near 153.62 per dollar.
Rates moved modestly. The 10-year US Treasury yield stayed near 4.05%, while the 2-year yield rose about three basis points to 3.43%. In Europe, Germany’s 10-year yield dipped to about 2.74%, and Britain’s 10-year yield fell to about 4.37%.
Crypto and commodities also reflected risk-sensitive trading. Bitcoin fell 1.4% to $67,835.88, while ether eased 0.2% to $1,993.62. WTI crude slid 0.9% to $62.30 a barrel. Gold dropped 2.3% to $4,878.66 an ounce, extending a pullback after recent gains.
Norwegian Cruise Line rallied after the Wall Street Journal reported Elliott built a stake above 10%.
Fiserv rose after news that Jana Partners took a stake.
Warner Bros. Discovery agreed to reopen sale talks with Paramount Skydance, setting up renewed deal tension.
Anthropic’s Pentagon contract talks faced delays tied to additional safeguards requested for Claude.
General Mills lowered its fiscal 2026 sales outlook, citing a tougher consumer backdrop.
Overall, markets remain cautious as investors weigh the long-term potential of AI against its near-term risks to earnings, valuations, and broader economic stability.
